Economics textbooks present the overly simplistic notion that minimum wages higher than the market floor results in higher unemployment. At the time of publication of this index, Australia had an unemployment rate of 4.2% and the U.S. had a rate of 9.4%.

The two most important metrics relative to the impact of minimum wage on economic freedom the report measured, compare favourably between the two countries, showing that Australia isn’t relying on other far higher economic metrics to compensate. Business freedom was rated 90.3 in Australia and 91.3 in the U.S., and Labor freedom was rated 94.9 in Australia and 94.8 in the U.S.

15 Responses

“Australia has $15 an hour minimum wage and is ranked more economically free than the U.S.”

WHAT A LOAD OF TOSH! Really! That whole statement is an oxymoron.

Say look: Precisely ~how~ would it be that MANDATING a ‘minimum wage’ makes a nation ~more~ economically free, when the mandate REMOVES the freedom of choice?

Mandates REMOVE freedom. Ultimately what you’re left with is communism, inasmuch as there is wage compression and artificially imposed inflation.

Wage compression happens when the least able employees get paid more money than they are worth, and the most abled employees are less likely to receive a pay raise no matter how good they might be.

Artificial inflation happens when the price of goods and services rise in direct response to the mandated minimum pay. Virtually EVERY TIME that minimum pay rate increases, EVERYBODY suffers. But more so the ones least able to make ends meet.

Ergo, the whole idea of a mandated ‘minimum wage’ is chimerical machination predicated upon the idea that government may fix all problems, when no such thing is true.

When fully evaluated for what it is, the so-called ‘minimum wage’ is nought but a government contrivance instigated to collect more in taxes. That’s it, and no thing more.

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sir ji i am very much surprised that in australia minimum wage rate is 15 per hr and in usa it is 7.25 per hr.I m surprised that although the wage rate in us and canada is very low even than more people are migrating to these countries than australia

Most workers in the U.S. and Canada make more than minimum wage, and I assume it’s the same in Australia.

While more absolute numbers of people move to the U.S. than Australia or Canada each year, they have a higher percentage of foreign born residents than the U.S., and Canada has more immigrants every year as a percentage of its population than the U.S. or Australia.

The $7.25 an hour is for federal employees, and those contracted to work for the federal government. For other workers in the 50 states, it is higher or lower.

Wrong. The 7.25 minmum wage is for ALL employees, and does not apply to farm workers, legal or not. Most unskilled jobs do pay the absolute minimum. I work at a college bookstore right now and it is one such job (washington state $9 per hour minimum.) Most fast food places and even many 2 and 3 star restaurants pay minimum wage. I’ve done manual labor for $9, $11… Businesses pay what they can get away with paying. Thank God for the minimum wage.

Another issue is immigration laws, and Australia’s distance from other countries, which could create greater barriers to entering Australia for work, although the conditions there are obviously much better for the locals. Also, the lower levels of immigration to Australia help to increase the minimum wage.

http://www.columbian.com/news/2010/jul/01/yacht-builder-issues-sos-to-vendors/#comments — you might be interested in this story. It has to do with my old employer and wind power. They’re going to hire back 150 of the 400 laid off in ’08. Unfortunately I’m about #350. This is assuming the stock market doesn’t take another big “dip” in the immediate future. Will the bankunists let our economy improve from this point? I sure hope they do. You know how much I love them.

Don’t you see yet my brother? You are referencing an organization that if it wasn’t founded by bankers, it a was infiltrated by them. As were the organizations that write the economic text books. You know those unemployment figures are a joke. Your references are all banker controlled mainstream. If we had a truly free market would minimum wage ever arise as an issue? Give us our currency. Let us do business. When the unwashed masses finally open their eyes, I pray for those who were once referred to as “banker”.

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